Indian Stock Market Update
The Indian stock market experienced its third consecutive decline on Wednesday, closing at a nearly one-month low. This downturn was largely driven by a late sell-off in consumer durables, private banks, and IT shares. Investors remained cautious ahead of the US Federal Reserve meeting outcome, which was released in the overnight trade.
Key Market Indices
The BSE Sensex dropped by 275 points, or 0.32%, to settle at 84,391, a level not seen since November 11. The 50-share NSE Nifty fell by 82 points, or 0.32%, to close at a month's low of 25,758.
US Federal Reserve Meeting Outcome
The United States Federal Reserve cut its benchmark interest rate by 0.25%, bringing the federal funds rate to its lowest level in more than three years. The new target range now stands between 3.5% and 3.75%, down from 3.75% to 4%. This marks the Fed's third consecutive rate cut since September, reducing the rate by a total of 0.75% this year.
IPO Market Action
The primary market is expected to remain active today, with two IPOs (Nephrocare Health Services and Park Medi World) entering their second day of bidding. The allotment for two other IPOs, Wakefit Innovations and Corona Remedies, will be finalized today.
Market Outlook and Key Drivers
Vinod Nair, Head of Research at Geojit Investments Limited, stated that global equity markets have experienced continued volatility due to rising Japanese bond yields and indications of BOJ monetary tightening. He added that the focus now shifts to the US Fed meeting and that Indian markets mirrored global caution, weighed down by persistent FII outflows, INR weakness, and uncertainty surrounding U.S.-India trade negotiations.
Trade Setup for Thursday
Rupak De, Senior Technical Analyst at LKP Securities, said that the Nifty has revisited yesterday's low, reinforcing a bearish bias. He added that the index has broken below the 50% retracement of the previous rise, indicating weakness. In the short term, the index is likely to stay under pressure, with immediate support at 25,700.
Stocks to Buy Today
Market experts have recommended eight intraday stocks, including Eicher Motors, AU Small Finance Bank, ICICI Bank, Infosys, Punjab National Bank, Paradeep Phosphates, Chennai Petro, and Thirumalai Chemicals.
Sumeet Bagadia's Stock Picks
- Eicher Motors: Buy at ₹7228, with a stop loss at ₹6975 and a target price of ₹7734.
- AU Small Finance Bank: Buy at ₹994, with a stop loss at ₹960 and a target price of ₹1062.
Ganesh Dongre's Stock Recommendations
- ICICI Bank: Buy at ₹1360, with a stop loss at ₹1345 and a target price of ₹1398.
- Punjab National Bank: Buy at ₹118, with a stop loss at ₹114 and a target price of ₹125.
- Infosys: Buy at ₹1585, with a stop loss at ₹1560 and a target price of ₹1625.
Shiju Koothupalakkal's Stock Picks
- Paradeep Phosphates: Buy at ₹157, with a stop loss at ₹154 and a target price of ₹166.
- Chennai Petro: Buy at ₹945.80, with a stop loss at ₹925 and a target price of ₹990.
- Thirumalai Chemicals: Buy at ₹229.78, with a stop loss at ₹225 and a target price of ₹247.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.